Calyx Group PLC
11 July 2005
FOR IMMEDIATE RELEASE 11 July 2005
Calyx Group plc
('Calyx')
Acquisition of Convergent and Trading Update
Calyx, one of the largest single-source providers of information and
communication technology ('ICT') network solutions throughout Ireland, today
announces the acquisition of Convergent Systems Ireland Ltd ('Convergent'), a
leading Irish supplier of communication solutions, for a total consideration of
up to €0.6 million (£0.41 million) in cash.
Calyx has a broad client base to which it offers ICT network design, sales,
installation, training and support and recently completed a successful Placing
and Admission to AIM.
Convergent was set up in December 1999 and delivers professional services,
including consultancy, project management, installation, & support of voice and
data products to a wide range of business sectors. As an Avaya Business
Partner, Convergent specialises in helping their customers to maximize the use
of their existing voice and data infrastructures to reduce costs and improve
efficiency. The Convergent client base includes Citigroup, One Direct, American
Holidays, AVX, Micros Fidellio, Dublin Tourism, Sportingbet Ireland, Accenture
and Norfolkline.
The Convergent acquisition will enhance Calyx's skill set particularly in
relation to professional services and systems integration. They also bring a
healthy client portfolio and a positive, ambitious approach to the converging
voice and data market.
For the year-end 31 August 2004, the most recent year of which audited figures
have been published; Convergent had revenues of €1.3 million, EBITDA of €0.25
million and gross book value assets of €0.66 million.
The acquisition of Convergent will be settled by an initial consideration of
€0.3 million with a further earn-out payment of up to €0.3 million payable in
July 2006, subject to appropriate performance criteria being met.
Calyx Trading Update
First half trading has been strong and is in line with managements'
expectations, which were highlighted at the time of the Placing and Admission to
AIM. Calyx continues to experience favourable trading conditions and the Board
remains confident about the prospects for the full year.
Calyx will update the market on further progress at its interim results, for the
6 months ended 30 June 2005, which will be announced in August 2005.
Maurice Healy, Chief Executive of Calyx, commenting on the acquisition said;
'I am pleased to announce the acquisition of Convergent, following our strong
first 3 months as a public company. This acquisition is part of our continuing
acquisition strategy, as set out at the time of our Placing, and will be an
ideal synergistic fit. We will continue to seek appropriate acquisitions which
the Board believe will further enhance Calyx's position within the market and
provide us with the ability to expand our services throughout Europe.'
For further details please contact:
Calyx Group plc
Maurice Healy, Chief Executive Tel: +353 1 676 3363
Buchanan Communications
Tim Thompson / James Strong Tel: +44 (0)20 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
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